Intel, which makes 80 percent of microprocessors that power personal computers, gave no new financial forecasts, saying it would publish a mid-quarter update on December 4.

NEW YORK (Reuters) - Intel Corp (INTC.O: Quote, Profile, Research, Stock Buzz)
warned on Friday the credit crisis could hurt demand for its chips, and
lead to the insolvency of key suppliers that could result in product
delays.

Shares of Intel fell 1.5 percent in pre-market trade, after the
world's largest chip maker noted these new economic risks in its 10-Q
quarterly report filed with the U.S. Securities and Exchange Commission.

Intel, which makes 80 percent of microprocessors that power personal
computers, gave no new financial forecasts, saying it would publish a
mid-quarter update on December 4.

"Current uncertainty in global economic conditions poses a risk to
the overall economy as consumers and businesses may defer purchases in
response to tighter credit and negative financial news, which could
negatively affect product demand and other related matters," Intel said
in the third-quarter filing. These comments were not in its
second-quarter filing.

"There could be a number of follow-on effects from the credit crisis on Intel's business, including insolvency of key suppliers resulting in product delays," it said.

Other risks include the inability of customers to obtain credit to
finance purchases of Intel products, as well as Intel possibly facing
its own difficulties in obtaining short-term financing from the
issuance of commercial paper.

When Intel reported third-quarter results in mid-October, it
provided investors with wider-than-usual forecast ranges for the fourth
quarter due to uncertainties about the global economy.

Intel had forecast fourth-quarter revenue to be between $10.1
billion and $10.9 billion, which it said was weaker than typically seen
in the period running up to the year-end holiday season.

Intel said on Friday that while its inventory levels are currently
appropriate, economic uncertainty may result in lower-than-expected
demand and force the company to write-off excess inventories, thereby
hurting its gross margin.

It noted that some customers are building inventory, but "with the
current macroeconomic environment, it is hard to discern what demand
will be for the fourth quarter of 2008."

Intel, the industry's biggest investor in the next generation of
chip production equipment, had previously trimmed its capital spending
plans modestly for 2008 to $5 billion, plus or minus $100 million, from
$5.2 billion previously.

Shares of Intel were down 1.5 percent at $15.92 in pre-market trading, compared to their Nasdaq close on Thursday of $16.17.